Firm takeovers in war times: the incorporation of the Tenerife insular telephone network into CTNE in 1938

Abstract

This paper studies the causes, conditions, and consequences of the process of absorption of the Cabildo of Tenerife's insular telephone network (RTIT by its Spanish acronym) into the National Telephone Company of Spain (CTNE) in 1938. This process, which was presented as a friendly purchase beneficial to both parties, was actually strongly influenced by the special circumstances of the Civil War. The conditions that contributed to this decision are analysed, such as the financial situation of the Cabildo, the disciplinary processes suffered by the personnel considered disaffected by the military regime, and the situation of the company's management. The efforts made by CTNE to incorporate this network are also analyzed, as well as the consequences for both entities, particularly for the insular institution, which suffered a significant decrease in revenues.